A judge temporarily blocks New York City’s controversial pied-à-terre tax after homeowners sue. Cheryl Casone and analyst Mitch Roschelle break down the launch, calling it a “hot mess” and a “wealth confiscation.” President Donald Trump criticized New York City’s new pied-à-terre tax and said his administration is examining whether the federal government has legal authority to intervene, escalating a fight over a surcharge targeting luxury second homes. Trump argued in a Truth Social post on Tuesday that the tax could ultimately cost New York more than it raises by encouraging wealthy homeowners and taxpayers to leave for lower-tax states such as Florida and Texas. “The New York City Pied-a-Terre Tax is costing the City and State of New York a fortune in the sense that the money that will ultimately be raised is very little compared to the TAXES PAID by the tens of thousands of people fleeing the city never to return,” Trump wrote. He added that Florida, Texas and other states are benefiting financially from people leaving New York and called the policy a dangerous political “experiment.” NEW YORK’S RICH RUSH TO AVOID MAMDANI’S SECOND HOME TAX President Donald Trump criticized New York City’s pied-à-terre tax and said he is examining whether the federal government has the legal authority to intervene. (Anna Moneymaker/Getty Images, File / Getty Images) The president also raised the possibility of federal action. “I’m trying to see if the federal government has any legal right to prevent this disaster, before it’s too late, for the millions of people who value New York and want to see it prosper, instead of becoming a dirty, crime-ridden, decrepit place of ridicule and contempt,” Trump wrote. Trump did not identify what federal law or executive authority his administration could use. question the municipal tax. The White House did not immediately respond to FOX Business’ request for additional details on what federal authority or action the Trump administration is considering. MAMDANI TAX ROLL MISTAKE WILL BE COUNTERPROGRESSIVE FOR EVERYDAY NEW YORKERS AS BUYERS HEAD SOUTH, DEVELOPER WARNS The pied-à-terre property tax is a surcharge imposed on high-value residential real estate that does not serve as the owner’s primary residence. (Gary Hershorn/Getty Images, File / Getty Images) Trump’s comments come a day after a New York judge temporarily blocked Mayor Zohran Mamdani’s administration from moving forward with parts of the tax rollout after three homeowners sued over how the city implemented the surcharge. Staten Island Supreme Court Justice Wayne Ozzi ordered the city to remove a list of disputed properties that covered more than 900,000 property owners and temporarily prohibited officials from imposing or collecting the surcharge based on the list without first making the individualized determination and providing the notice required under state tax law. The lawsuit challenges the administration of the tax rather than the legality of the surcharge itself. “We disagree with today’s ruling, but we are confident in both the pied-à-terre surcharge and the City’s ability to implement it fairly and effectively,” Mamdani spokesman Matt Rauschenbach said after the ruling. PIED-À-TERRE TAX New York Mayor Zohran Mamdani has said that approximately 17,000 homeowners in a city of 8.5 million people are potentially affected by the surcharge. (Michael Nagle/Bloomberg via Getty Images, File/Getty Images) “This surcharge asks those who own second homes valued at $5 million or more to contribute their fair share to the city from which they benefit,” he added. Mamdani has said about 17,000 homeowners in a city of 8.5 million people are potentially affected by the surcharge. The Mamdani administration did not immediately respond to FOX Business’ request for comment on Trump’s criticism and his argument that the surcharge could drive wealthy taxpayers and property owners out of New York. Trump also tied the surcharge to New York City’s congestion pricing program. “Financial and then social ruin is a 100% certainty; and then radical left jihadists charge congestion pricing on top of everything else,” Trump wrote. remains unclear. Kathy Hochul’s office did not immediately respond to FOX Business’ request for comment on Trump’s criticism of the surcharge or the possibility of federal intervention. The legal fight over implementation continues as Mamdani defends the surcharge and Trump considers whether the federal government has an avenue to intervene.
